Mosaic Insurance unveils new political risk offering for US market

Mosaic Insurance has announced the expansion of its political risk coverage to the US market with the launch of an arbitration award default insurance (AADI) product.

The new offering is designed to mitigate non-payment risks associated with arbitration awards, especially in high-stakes disputes or situations where a state has a history of financial defaults.

It also seeks to reduce the uncertainty for claimants and litigation funders, as well as enable businesses to monetize potential earnings from arbitration awards.

Furthermore, it provides comprehensive coverage for arbitral award values to protect against administrative and financial losses during arbitration or enforcement proceedings.

“Arbitration award default insurance revolutionizes the landscape for claimants, law firms, and litigation funders engaged in international arbitration,” said Tamar Katamadze (pictured), who was tapped to lead the product for Mosaic’s political risk division.

“This solution provides clients with the ability to navigate both duration and liquidity risks through every phase of arbitration proceedings or in recognition and enforcement of arbitral awards.”

Finn McGuirk, global head of political risk, also emphasized the relevance of AADI amid “geopolitical and economic turbulence.”

“AADI is an increasingly relevant product that protects investors against sovereign default and enforcement risk when navigating the complexities of claims in international arbitration,” he said. “We’re pleased to offer this innovative coverage among our suite of products.”

Mosaic’s AADI covers both pre-award and post-award scenarios, according to a company release. It has capacity of $65 million per risk with a term of five years, which can be extended depending on individual cases.

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